Requirment 1-3

Savvy Drive-Ins borrowed money by issuing $3,500,000 of 9% bonds payable at 99.5. Interest is paid semiannually. Requirements 1. How much cash did Savvy receive when it issued the bonds payable? 2. How much must Savvy pay back at maturity? 3. How much cash interest will Savvy pay each six months? Requirement 1. How much cash did Savvy receive when it issued the bonds payable? Amount of cash Savvy received when the bonds payable were issued =